10-Year Free Cash Flow Projections(showing years 1, 3, 5, 7, 10)
| Year | Year 1 | Year 3 | Year 5 | Year 7 | Year 10 |
|---|
| Revenue | $18.1B | $20.4B | $21.8B | $22.9B | $24.7B |
| EBIT | $4.6B | $5.2B | $5.7B | $6.2B | $6.8B |
| Tax | $973M | $1.1B | $1.2B | $1.3B | $1.4B |
| NOPAT | $3.6B | $4.1B | $4.5B | $4.9B | $5.3B |
| + Depreciation | $526M | $595M | $634M | $666M | $718M |
| - Capex | $224M | $254M | $271M | $284M | $306M |
| - Δ NWC | $58M | $71M | $35M | $36M | $39M |
| Free Cash Flow | $3.9B | $4.4B | $4.9B | $5.2B | $5.7B |
| Discount Factor | 0.933 | 0.813 | 0.708 | 0.616 | 0.501 |
| Present Value | $3.6B | $3.5B | $3.4B | $3.2B | $2.9B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|
| 5.16% | $448.51 | $485.10 | $535.47 | $609.21 | $620.65 |
| 6.16% | $364.92 | $384.95 | $410.47 | $444.07 | $490.33 |
| 7.16% | $306.85 | $319.07 | $333.91 | $352.33 | $375.78 |
| 8.16% | $263.31 | $271.30 | $280.72 | $291.96 | $305.61 |
| 9.16% | $228.96 | $234.46 | $240.80 | $248.16 | $256.82 |
How to read: This table shows how the valuation changes with different WACC (discount rate) and terminal growth rate assumptions. Green = undervalued, Red = overvalued.
Key Assumptions & Drivers• Financial Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth5.24%
Year 3 Revenue Growth5.62%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin25.38%
Terminal EBIT Margin28.00%
Tax Rate21.20%
Historical Capex / Rev1.24%
NWC / Revenue6.50%
Key Drivers: Revenue growth, operating margin expansion, capex efficiency, and working capital management are the primary drivers of cash flow generation. Terminal value assumptions significantly impact final valuation.
Institutional-Grade Methodology
Actual Company Data: Revenue, EBIT, Capex, NWC, Tax Rate, Interest Expense, Beta
Market Assumptions: Risk-free: 4.5% (10Y), MRP: 4.5% (Damodaran 2026), Exit: 12x EV/EBITDA (Financial Services sector)
This DCF model is for informational purposes only. Projections are based on assumptions that may not materialize. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.